Search Results: Enforcement Actions

CFPB Files Proposed Judgment in Bank Suit Regarding the Opening of Unauthorized Accounts

​On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and ​order in its suit against a national bank accused of allegedly opening unauthorized accounts on behalf of consumers​​. ​ The proposed judgment would resolve allegations that the bank opened unauthorized accounts in the names of its customers.  As…

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CFPB Enters Into Consent Order with Bank Resolving Allegations of Force-Placed-Insurance

On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national bank, resolving allegations related to the bank’s auto lending practices. The consent order​ ​​related to auto lending practices resolves allegations that the bank’s practices related to force-placed insurance policies violated the Consumer Financial Protection Act of 2010 (CFPA), 12…

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CFPB Enters Into Consent Order With Financial Technology Company

On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…

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California Attorney General Warns California-Chartered Banks and Credit Unions On Surprise Overdraft Fees and Returned Deposited Item Fees

On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code,…

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National Bank Settles with NY Attorney General for $700K

​On April 17, 202​4, the New York State Attorney General (NY AG) announced that it entered into an Assurance of Discontinuance​ (AOD) with​ a national bank, resolving​ allegations related to the bank’s debt collection practices.  The bank is a nationally chartered bank that issues debit cards, prepaid cards, payroll cards, and gift cards, primarily through third-party servicers, many of whom…

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CFPB Enters Into Consent Order with For-Profit Coding School

Piggy Bank with a Graduation Cap

​On April 17, 2024, the Consumer Finance Protection Bureau (CFPB) announced ​that it had entered into a consent order​ with BloomTech Inc., d/b/a Bloom Institute of Technology (BloomTech), and BloomTech’s CEO, Austen Allred, resolving allegations that the company’s practices with respect to income-share agreements (ISAs) violated various consumer protection statutes.  BloomTech, formerly known…

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California Federal Court Bans Mortgage Operators as Result of Joint FTC and DFPI Case

​On February 2, 2024, the U.S. District Court for the Central District of California issued an order permanently banning several companies and their owners from the telemarketing and debt relief businesses and requiring them to pay approximately $19 million in restitution and civil money penalties​.  This order came as a…

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Payments Company Settles with DFPI Over Alleged Junk Fees

​On January 9, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with an internet-based financial services company that allows online merchants to offer payment in installments to its customers.  The DFPI alleged that the company violated the California Consumer Financial Protection Law (CCFPL) by failing to disclose…

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FTC Enters Settlement with California-based Lead Generator

On January 2, 2024, the Federal Trade Commission (FTC) announced it had reached a settlement with a California-based lead generator resolving allegations that the company facilitated illegal telemarketing calls.  This lead generator owned the domain to several websites and sold thousands of leads to third parties for telemarketing purposes. The…

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CFPB Issues Consent Order Against Credit Reporting Agency For Alleged Failures to Timely Place Credit Freezes And Locks On Conumser Reports

​​On October 12, 2023, the Consumer Financial Protection Bureau (CFPB) issued a consent order and a stipulation ​against a parent credit reporting agency and two of its subsidiaries for for alleged violations of the Fair Credit Report Act (FCRA) and the Consumer Financial Protection Act (CFPA). The CFPB alleged that as early as…

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CFPB Takes Enforcement Action Against Mortgage Lender and Real Estate Brokerage for RESPA Violations

On August 17, 2023, the CFPB announced that it had taken enforcement action against a Florida-based mortgage lending and servicing corporation, as well as a New York-based real estate brokerage firm, issuing consent orders against the businesses for “exchanging things of value return for mortgage loan referrals”, in violation of Section 8(a)…

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FTC Approves Consent Order with Payment Card Network Operator for EFTA Violations

On May 30, 2023, the Federal Trade Commission (FTC) announced that it had finalized a consent order with one of the nation’s largest credit and debit card providers in an administrative action regarding alleged violations of the Electronic Funds Transfer Act (EFTA), as amended, 15 U.S.C. § 1693o-2, and its implementing regulation,…

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CFPB Enters Into $15 Million Settlement with Auto Lender

On February 23, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order​ with an auto lender based in Georgia.  The order resolves allegations that the lender engaged in unfair practices and predatory lending as to military families on auto title loans in violation of the Consumer Financial Protection Act (CFPA), 12…

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Pennsylvania AG Sues Lead Generators For Deceptive Ads

On November 2, 2022, the Pennsylvania Office of Attorney General filed a lawsuit in federal court alleging that a group of companies offering lead generation services violated the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, and Pennsylvania consumer protection law, 73 P.S. §§ 201-3 and 201-4, by engaging in…

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CFPB and DOJ Order Mortgage Company to Pay Over $22 Million for Advertising and Marketing Discrimination

On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) filed a complaint and proposed consent order in a federal district court alleging that a mortgage company intentionally discriminated against families living in majority-minority neighborhoods around Philadelphia in violation of the Fair Housing Act…

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CFPB Sues TransUnion and Senior Executive for Violating Law Enforcement Order Prohibiting Deceptive Marketing

On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in federal court against TransUnion, two of its subsidiaries, and its longtime executive for failing to implement requirements of the CFPB’s 2017 law enforcement  order to TransUnion, and for violating Regulation V, which…

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CFPB Seeks to Hold Mortgage Servicers Accountable, and Establish New Mechanisms for Protecting Borrowers, Against Forthcoming Increase In COVID-19 Foreclosures

This month the Consumer Financial Protection Bureau (CFPB) doubled-down on its earlier warning that the end of 2021 could see widespread foreclosures as COVID-19-related protections expire, by issuing guidance to mortgage servicers, and a notice of proposed rulemaking, regarding actions mortgage servicers can take to deal with the onslaught.  On…

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California’s DFPI Launches Investigation and First Formal Enforcement Action

On February 3, 2021, California’s Department of Financial Protection and Innovation (DFPI) announced that it has commenced its first formal enforcement action and launched a separate investigation into student loan debt relief companies.  Goodwin previously provided an overview of three new California consumer finance laws that became effective in January 2021,…

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